This video covers one third of “Change The Power Structure“, which in turn is a part of my “9 Point Agenda For Counter-Revolution”.
More information on the “9 Point Agenda for Counter-Revolution”
Related Topics: Abolish Aristocracies; Control Corporations; Anti-Aristocracy Tax
This is part of what I call the counterrevolution to Radically Reverse Ronnie Rodeo's Reactionary Rapepublican Revolution. And if you don't know what I mean by that, you might want to first look at my video: “Counter-Revolution – A Nine Point Agenda for Change”. If you've already seen that video, you still might be asking why we need to refocus tax policy as part of our effort to overcome the damage which is been done to our society over the last 40 years. Many of us think of taxation is simply the way in which government gets the funding to keep itself going and pay the workers. But taxation is much more than that. It is the most powerful tool that government has for influencing the economy. For deciding how the society operates. And most importantly for moving wealth from one part of the society to another. And we desperately need to change our power structure and change the direction in which wealth is currently flowing. I propose three general changes to tax policy and three specific tax changes. The general changes are one: making our tax laws clearer and easy to understand and comply with. two: taxing those who can afford it and regulating those who need it. Three: encouraging and enforcing voluntary compliance with our tax laws. The 3 specific tax changes have to do with Social Cost and Benefit Taxation the Anti Aristocracy tax and the Pro-Investment Tax Let me give you a little more detail about the three general changes. The first is making our tax laws clear and easy to understand as well as making them easy to comply with. I propose we do a complete revision of the Internal Revenue Code (the tax laws of the federal government). This is not a new idea. Ronnie Rodeo did it in 1986. We are overdue. Our tax laws have become very complex. We need to make them clear, simple and easy for anyone to understand. They need to be posted online both during and after the revision process. My second general change is taxing those who can afford it and regulating those who need it. Since Ronnie Rodeo's Reactionary Rapepublican Revolution, the tax rates for high income taxpayers have been dramatically reduced. I propose to raise them. I also propose to close many loopholes from which higher income taxpayers, both corporations and individuals have benefited. We need to simplify compliance for all taxpayers. Simpler laws written in easy to understand language will help. But we also need to make some changes in accounting practices and increase computerization of the entire process. We don't want to stifle entrepreneurs, and therefore I propose that larger and older corporations be subject to higher taxes and tighter regulation than small startups. And finally we need to dedicate greater resources to assisting low and middle income individual taxpayers. They should be getting all the benefits they have coming to them without having to incur undue effort or expense. The last general change is encouraging and enforcing voluntary compliance with our tax laws. The first thing we need is efficient and transparent government of by and for the people. I have proposed an amendment to the Constitution which would require greater transparency from our government. It is covered in my video on constitutional amendments. The next thing we need to do is increase the IRS budget so that it can effectively do its job of ensuring compliance through audits and assisting taxpayers. These expenditures constitute one of the few line items in the federal budget which not only pays for itself but produces additional revenue. Those are my proposed general changes: making our tax laws clear and easy to understand and comply with taxing those who can afford it and regulating those who need it and encouraging and enforcing voluntary compliance with our tax laws I am also proposing changes to three specific tax types: Social Cost and Benefit Taxation the Anti Aristocracy tax and the Pro-Investment Tax None of these are new. All of them were in existence before Ronnie Rodeo's Reactionary Rapepublican Revolution. Over the last 40 years they have been weakened and misused. All I propose here is that we set them right. The first is social cost and benefit taxation. Social benefit taxation is a policy which taxes behaviors which are bad for society. So that economic actors, be they individuals or corporations are less likely to do them because the cost, when the tax is added, will be to great. Good examples would be cigarette taxes and carbon taxes Social benefit taxation is exactly the opposite. It is simply a matter of passing laws which reduce the taxes for behavior which is good for society. Like the charitable contributions deduction or accelerated depreciation on capital assets. Our tax laws are full of social cost and benefit taxation. They were before Ronnie Rodeo, and they are now. The problem is that these days, with the tax laws being written by and for corporations and aristocracies, the behaviors which are penalized tend to be those which are good for society and many of the behaviors which are rewarded tend to be those which although they are good for corporations and aristocracies are bad for human beings. As you can see, what we need is a change of direction. I talk much more about these specifics of this and other tax policies in other videos but the concept is simple. Use the tax laws to reward good behavior and punish bad behavior. The second tax type which we need to address is what I call the anti-aristocracy tax. Over the last 40 years, aristocracies, which shouldn't exist at all, have proliferated and grown ever wealthier. If you are not aware of this phenomenon, you might want to watch my video "Abolish Aristocracies in America". The most important tool for abolishing aristocracies is what you may have heard referred to as the “death tax”. They call it that to scare you. The real name is estate and gift and generation-skipping transfer tax. But it's real name should be anti-aristocracy tax. This law taxes wealth given to beneficiaries who have not earned it. Wealthy humans may spend whatever they want on themselves while they are alive. Only humans trying to pass on excessive wealth to others are affected by the anti-aristocracy tax. As you can imagine, this tax has been reduced and and loaded with loopholes over the last 40 years. I propose we raise the rates to higher than they were before Ronnie Rodeo. To the point where, for billionaires, any more than one half billion dollars given to their children would incur a tax rate of 98%. And of course we need to close most of those loopholes. Lastly, the pro-investment tax. Otherwise known as the capital gains tax. Corporations tend to be very shortsighted. They are focused on current stock price and quarterly reporting rather than long-range planning and the welfare of our children and grandchildren. One of the reasons for this is the stock market. Apologists for Ronnie Rodeo's Reactionary Rapepublican Revolution will tell you that the stock market is the engine of capitalism. It is actually better described as a casino. One of the ways that we can make our corporations less shortsighted is to make dramatic changes in the capital gains tax. Capital gains taxation is simply the way in which we tax money received when the taxpayer sells capital asset ; Capital assets can be shares of stock, a business, a parcel of land, a work of art, etc Currently we have a two-tier system. Assets held for you less than a year are taxed at a greater rate than those held for more than a year. Under my proposal there will be five tiers, stratified to reward long-term investment and discourage gambling. For example, gain on assets held for one day or less will be taxed at 98%, but for those held for over 20 years the tax rate will be 5%. This change will discourage short term gambling and re-direct investors efforts toward intelligent investment, funding our future. Thus i think it is appropriate to change the name from capital gains tax to Pro-Investment Tax. to summarize: Three general change: making our tax laws clearer and easy to understand and comply with. taxing those who can afford it and regulating those who need it. encouraging and enforcing voluntary compliance with our tax laws. Changes to 3 specific tax types: Social Cost and Benefit Taxation the Anti Aristocracy Tax and the Pro-Investment Tax All of these proposed changes are covered in greater detail in some of my other videos. And they are part of my larger nine point agenda for change which is intended to radically reverse Ronnie Rodeo's Reactionary Rapepublican Revolution. There are quite a few videos on this topic.